United Arab Emirates seize Dh192 million price of products because of tax violations – Information

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United Arab Emirates seize Dh192 million worth of goods due to tax violations - News

Goods seized during the inspections include tobacco products, soft drinks and energy drinks.

The United Arab Emirates’ Federal Tax Authority (FTA) announced on Sunday that goods valued at Dh191.83 million were seized last year due to violations of local tax rules.

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The confiscated goods were subject to excise duty.

The agency confiscated 9.4 million packs of cigarettes that did not bear the digital tax stamps. 14,000 kg of shisha tobacco products; and more than 803,000 packets of other selective goods, including soft drinks, energy drinks and sweetened drinks; electronic smoking devices and tools and liquids used therein.

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The products were seized as part of inspection campaigns in collaboration with the economic development departments and private sector actors.

The campaign aims to strengthen market inspections and ensure compliance with laws and tax procedures.

The Free Trade Agreement said the introduction of the excise tax has had many “notable achievements,” such as building a safe and healthy society by reducing the consumption of harmful goods.

Khalid Ali Al Bustani, director general of the free trade agreement, said the agency is prioritizing protecting consumers from harmful products that do not meet UAE regulations and standards while actively fighting tax evasion.

“The FTA inspections are based on various field and electronic procedures that prevent the sale, circulation and stockpiling of products that have not met their excise or VAT obligations,” said Al Bustani.

“These procedures include the ‘Tobacco and Tobacco Products Labeling Program’, which came into force on January 1, 2019, in accordance with Cabinet Decision No. (42) of 2018.

“The decision provides for a digital tax stamp to be displayed on the packaging of tobacco products and to be registered in the database of the free trade agreement. Each stamp contains data that can be read by special devices,” he added.

-waheedabbas@khaleejtimes.com